Lawmakers at the Senate have passed the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) submitted to the red chamber by President Muhammadu Buhari.
Aside from considering and passing the fiscal policy, the lawmakers also retained all the president assumptions and projections contained in the legal framework including the exchange rate of N410.15 per dollar proposed by the Executive .
They also approved the projected Gross Domestic Product growth rate of 4.20 per cent, retained the projected inflation rate of 13 per cent Fiscal deficit estimate of N5.62 trillion, and new borrowings of N4.89 trillion, including foreign and domestic borrowing.
Also, the $3.5 bn International Monetary Fund loan at the rate of 0.01 per cent to 0.02 per cent proposed by the president was also approved to shore up the internal borrowing and to reduce external borrowing because of the exchange rate risks.
The senate retained the Federal Government’s 2022 revenue projection of N8.36 trillion; expenditure of N13.98 trillion, statutory transfers (N613.4 billion; Debt Service (N3.12 trillion); Sinking Fund (N292); Pension, Gratuities & Retirees Benefits of N567 billion; and Aggregate Expenditure of N13.98 trillion.
It would be recalled that Buhari had in his letter where he sought the lawmaker’s consideration and approval of the legal framework insisted that the timely passage of the document would facilitate the early preparation of the 2022 budget based on approved parameters by the upper chamber.
The letter titled: “Submission of the Federal Government of Nigeria 2022 – 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper” reads: “It is with pleasure that I forward the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the kind consideration and approval of the distinguished Senate.
“Let me use this medium to express my deep gratitude for the enduring collaboration and commitment of the leadership and distinguished Senators in our collective efforts to sustain the restoration of the January to December Financial year.
“On our part, we have worked very hard to sustain the early submission of the MTEF/FSP. This is to allow the National Assembly sufficient time to perform its important statutory duty of reviewing the framework and strategy paper.
“I herewith forward the 2022-2024 MTEF/FSP, as the 2022 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2022-2024 MTEF/FSP. I seek the cooperation of the National Assembly for expeditious legislative action on the submission.”